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HB21-1168

Historically Underutilized Businesses Local Government Procurement

Concerning historically underutilized businesses in local government procurement.
Session:
2021 Regular Session
Subjects:
Business & Economic Development
Local Government
Bill Summary

The bill requires local governments, including school districts, with a procurement budget of a certain size to collect data regarding the participation of historically underutilized businesses in local government procurement for a 5-year period and requires the local government to annually report that data to the secretary of state. The bill requires the secretary of state to share summarized data with the department of local affairs. The bill further requires the department of local affairs to annually include the summarized data received from the secretary of state (department), no later than August 13, 2021, to establish a pilot program to help local governments identify perceptual and substantial barriers to entry for historically underutilized businesses in local government procurement.The bill requires local governments participating in the pilot program to consider a number of items, such as:

  • Identifying implementation needs, such as labor and technology, for historically underutilized businesses preference programs for local government procurement (programs);
  • Determining the appropriate size contracts that would benefit from a program; and
  • Creating a sample program that all local governments may use and articulate the necessary steps to build a program.

The bill specifies that pilot program participants may collaborate with the department and the general assembly on future legislation requiring local governments to establish programs.In January 2022, the department is required to report on the progress of the pilot project as part of the department's presentation to its committee of reference at a hearing held pursuant to the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act".In January 2023, the department is required to include the findings of the pilot project as part of the department's presentation to its committee of reference at a hearing held pursuant to the "State Measurement for Accountable, Responsive, and Transparent (SMART) Government Act".

The bill defines a historically underutilized business as a business that is at least 51% owned and controlled, in both the management and day-to-day business decisions, by one or more individuals who are:

  • Members of a racial or ethnic minority group;
  • Non-Hispanic Caucasian women;
  • Persons with physical or mental disabilities;
  • Members of the lesbian, gay, bisexual, and transgender community; or
  • Veterans.

(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)


(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Status

Introduced
Passed
Became Law

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Bill Text

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